The silicone industry has undergone rapid development and transformation in recent years and currently presents the following situation:
In terms of production capacity and output, by the end of 2024, China's capacity for organosilicon monomers had reached 3.44 million tons, accounting for 76% of the global total capacity and firmly holding the top position globally. As the expansion cycle comes to an end, the supply pressure in the industry is gradually easing, and the new capacity added in the future will be limited.
From the perspective of market demand, silicone materials, with their excellent properties such as resistance to high and low temperatures, oxidation resistance, and radiation resistance, are widely used in multiple fields including new energy, electronic appliances, and medical health. Especially with the rapid development of emerging fields such as photovoltaic and new energy vehicles, the demand for silicone materials has shown explosive growth. It is estimated that by 2025, the consumption of organosilicon in fields such as electronics and electrical appliances, photovoltaic power, and new energy vehicles will achieve a significant year-on-year growth.
From the perspective of the competitive landscape, the industry's production capacity is constantly concentrating in the hands of leading enterprises. Companies such as Hesheng Silicon Industry, Lanxing Xinghuo, and Dongyue Silicon Materials hold a dominant position in the market. These enterprises have continuously reduced production costs and enhanced their international competitiveness through large-scale production, full industrial chain layout and technological iteration.
From the perspective of policy and environmental protection requirements, the National Development and Reform Commission, in conjunction with the Ministry of Industry and Information Technology, has issued the "Five-Year Plan for the Green Development of the Silicone Industry", clearly requiring enterprises to complete zero-emission transformation of process exhaust gas and submit raw material traceability reports. This policy directly promotes the concentration of the industrial chain upstream, intensifying the survival pressure on small-scale enterprises. Meanwhile, local governments have also introduced policies for green factory certification to encourage enterprises to develop in a green way.
Overall, after experiencing a rapid expansion cycle, the silicone industry is gradually moving towards a new stage of supply and demand balance. In the future, with the continuous advancement of technology and the sustained release of market demand, the silicone industry will embrace new development opportunities.
